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You need to install some form of local server - if you're on Windows use WAMPP or XAMPP, if you're on mac you can use MAMPP or Linux you can use XAMPP or LAMPP - there's plenty of choices. This software comes automatically with php, mysql and apache (and other useful tools such as phpmyadmin for your databases).

There are several approaches you can take for setting up a local server. You could:

Manually install Apache, MySQL, PHP, etc and configure it yourself.
Install such an environment automatically using a special package, such as DAMP, WAMP or MAMP.
Use a virtual machine to set up your server in its own environment, even with a different operating system. See Quickstart, DrupalPro, Drupal-up, or Aegir-up for examples of fully loaded development VMs that can be run on any operating system.

1) I am assuming you have WAMP Installed already, if not, first proceed to wampserver.com and download the latest version. Once installed, launch it, type http://127.0.0.1 on your browser, and make sure you see the default screen. And just in case your post#80 is already used for something else, here is a guide to changing WAMP servers default port.

2) Download Drupal - I'm using the v7.14 .zip version. Unzip into a dir at: C:\wamp\www, for example: C:\wamp\www\drupal - where drupal is the main directory containing all the drupal files.

3) Create a database in WAMP using PHPMyadmin. Make sure you have the following info ready: database name, username and password.

4) To begin installation, type: http://127.0.0.1/drupal. You should see a page displayed similar to the below. By the time we finish, all the processes at the left hand side must have a green-check mark.